NAP Tax Credits
The Neighborhood Assistance Program (NAP) provides state income tax credits as incentives for individuals and businesses to contribute directly to approved nonprofit organizations who serve the impoverished. Contributions may be in the form of cash, goods, stock, real estate, professional services, contracting services and rent/lease of space. Individual contributions are limited to cash or marketable securities. In return for their contributions, businesses and individuals receive credits that may be applied against their state income tax liability.
In 1981, Virginia’s General Assembly created the program to provide tax incentives to individuals and businesses to encourage participation in helping to alleviate poverty.
How does NAP work?
Individuals contributing to an approved NAP organization may receive a state tax credit of 40 percent of their cash donation. No tax credit will be issued for contributions of less than $500 (minimum) or in excess of $50,000.00 (maximum) per tax return, per taxable year.
A business contributing directly to an approved NAP organization organization may receive a state tax credit for 40 percent of their total contribution. Tax credits may be available to a business making a donation of at least $1,000 or nor more than $437,500 to an approved NAP organization.
Example:
Minimum - $1,000 donation X .40 = $400 tax credit
Maximum - $437,500 donation X .40 = $175,000 tax credit per tax year
Tax credits may also be available to individuals or married couples donating cash or marketable securities directly to approved NAP organizations. The minimum donation by an individual or a married couple must be at least $500. The value of the tax credit is equal to 40 percent of the donation.
Example:
Minimum - $500 cash donation X .40 = $200 tax credit
For information about NAP Program, you may go online to: (see the link below) or if you would like to make a donation using NAP credits, please contact the Director of Development or call 757-456-2366 (x504).